-
Second Quarter FY2016 adjusted diluted earnings per share increased
15.9% to $1.68
-
Fiscal Year 2016 adjusted diluted earnings per share now expected
to be in the range of $5.44 to $5.54, a reduction from prior
expectations of $5.73 to $5.83
-
Preliminary expectation for FY2017 adjusted diluted earnings per
share growth in the range of 4% to 6%
-
New regular share repurchase authorization increases available
capacity to $750 million
-
Two key customer contract extensions
VALLEY FORGE, Pa.--(BUSINESS WIRE)--May 5, 2016--
AmerisourceBergen Corporation (NYSE:ABC) today reported that in its
fiscal year 2016 second quarter ended March 31, 2016, adjusted diluted
earnings per share increased 15.9 percent to $1.68. Revenue increased
9.3 percent to $35.7 billion in the quarter. On the basis of U.S.
generally accepted accounting principles (GAAP), diluted earnings per
share were $2.68 for the March quarter of fiscal 2016. In the tables
that follow, we present our GAAP results as well as GAAP to non-GAAP
reconciliations.
The Company also announced that its board of directors authorized a new
regular share repurchase program which, together with available capacity
under the existing regular share repurchase program, permits the Company
to purchase up to $750 million in shares of its common stock, subject to
market conditions. To date in fiscal year 2016, the Company has spent
$100 million to repurchase shares of its common stock under its regular
share repurchase program.
“I am pleased with the solid performance we delivered in the March
quarter,” said Steven H. Collis, Chairman, President and Chief Executive
Officer of AmerisourceBergen. “Our recent acquisitions, MWI Veterinary
Supply (MWI) and PharMEDium, have made strong contributions, and
excellent performance in our specialty and consulting businesses helped
overcome a challenging year over year comparison and the expected
decline in generic inflation. In addition, we have extended our contract
with our largest pharmacy retail customer for an additional 3 years, and
our large pharmacy benefit manager customer has extended their contract
for an additional year.”
The comments below compare adjusted results, which exclude:
-
Warrants (income) expense;
-
Gains on antitrust litigation settlements;
-
LIFO expense;
-
Acquisition-related intangibles amortization;
-
Employee severance, litigation and other expenses; and a
-
Pension settlement.
In addition, we calculate our adjusted earnings per share for each
period using a diluted weighted average share count, which excludes the
accounting dilution resulting from the impact of the unexercised equity
warrants, and the impact from the shares repurchased under our special
share repurchase programs, net of the weighted average number of shares
issued related to the March 2016 warrant exercise. We previously issued
$600 million of 1.15% senior notes due in May 2017 to fund our initial
special share repurchase program. The interest expense incurred relating
to this borrowing is also excluded from the non-GAAP presentation.
Summary of Adjusted Quarterly Results
-
Revenue: In the second quarter of fiscal
2016, revenue was $35.7 billion, up 9.3 percent compared to the same
quarter in the previous fiscal year, reflecting an 8 percent increase
in Pharmaceutical Distribution revenue, and a 62 percent increase in
revenue within Other.
-
Gross Profit: Gross profit in the fiscal
2016 second quarter was $1.2 billion, a 12 percent increase over the
same period in the previous year, driven primarily by the addition of
MWI, which was acquired in February 2015, and PharMEDium, which was
acquired in November 2015. Gross profit as a percentage of revenue
increased 8 basis points to 3.27 percent from the prior year quarter.
-
Operating Expenses: In the second quarter
of fiscal 2016, operating expenses were $575 million, up 17.7 percent
over the same period in the last fiscal year. The increase in
operating expenses in the quarter was primarily driven by the addition
of MWI, and to a lesser extent, PharMEDium, and additional costs to
support the revenue growth of our businesses. Operating expenses as a
percentage of revenue in the fiscal 2016 second quarter were 1.61
percent compared with 1.50 percent for the same period in the previous
fiscal year, driven by the higher expense profiles of MWI and
PharMEDium.
-
Operating Income: In the fiscal 2016
second quarter, operating income of $592 million was up 7.2 percent
versus the prior year, driven by the increase in gross profit, which
was offset in part by the increase in operating expenses. Operating
income as a percentage of revenue decreased 3 basis points to 1.66
percent in the fiscal 2016 second quarter compared to the previous
year’s second quarter.
-
Interest Expense: In the fiscal
2016 second quarter, interest expense of $31 million was up 48.9
percent versus the prior year quarter due to the increase in
borrowings to partially fund the acquisitions of MWI and PharMEDium.
-
Tax Rate: The effective tax rate for the
second quarter of fiscal 2016 was 31.3 percent, down from 35.7 percent
in the previous fiscal year’s second quarter, reflecting a rate
benefit resulting from the favorable impact of growth in our
international businesses.
-
Earnings Per Share: Diluted earnings per
share were up 15.9 percent to $1.68 in the second quarter of fiscal
year 2016 compared to $1.45 in the previous fiscal year’s second
quarter, driven primarily by the income from our two recent
acquisitions and the lower effective tax rate.
-
Shares Outstanding: Diluted weighted
average shares outstanding for the second quarter of fiscal year 2016
were 229.3 million, a slight decrease versus the prior year quarter.
Segment Discussion
The Pharmaceutical Distribution segment includes both AmerisourceBergen
Drug Corporation (ABDC) and AmerisourceBergen Specialty Group (ABSG).
PharMEDium is a component of ABDC. Other includes AmerisourceBergen
Consulting Services, World Courier, and MWI.
Pharmaceutical Distribution Segment
In the second fiscal quarter of 2016, Pharmaceutical Distribution
revenues were $34.2 billion, an increase of 8 percent compared to the
same quarter in the prior year. ABDC revenues increased 6 percent, due
primarily to solid organic sales growth from our chain retail and health
systems customers. ABSG revenues increased 18 percent, which was driven
by strong performance in our oncology business (including an increase in
sales to community oncologists), and in our third party logistics
business, and by sales growth in our blood products, vaccine and
physician office distribution businesses. Intrasegment revenues between
ABDC and ABSG have been eliminated in the presentation of total
Pharmaceutical Distribution revenue. Total intrasegment revenues were
$1.8 billion and $1.6 billion in the quarters ended March 31, 2016 and
2015, respectively.
Operating income of $498 million in the March quarter of fiscal 2016 was
up 2 percent compared to the same period in the previous year due to the
addition of PharMEDium, strong performance in ABSG, and offset in part
by a year over year decline in ABDC operating income, driven by a lower
contribution from generic inflation and the impact of previously
announced customer renewals.
Other
Revenues in Other were $1.6 billion in the second quarter of fiscal
2016, an increase of 62 percent over the same period in the prior year
due primarily to the addition of MWI, which was acquired in February of
2015. Operating income increased 46 percent to $94 million in the second
quarter of fiscal 2016, driven by the additional income from MWI, and
strong performance in our consulting business.
Fiscal Year 2016 Expectations
“Looking ahead, we expect our gross profit in the second half of the
year to be negatively impacted by certain accelerating headwinds,
including an increase in the rate of generic deflation, and a lower
contribution from new generic launches,” said Mr. Collis. “In addition,
an internal strategic initiative we had launched to increase sales of
PRxO® Generics and to increase our independent retail segment
revenues is ramping slower than we had anticipated. Due to these
headwinds, we now expect fiscal year adjusted diluted earnings per share
to be in the range of $5.44 to $5.54.”
Other assumptions for financial performance in fiscal 2016 now include:
-
Revenue growth of approximately 8 percent;
-
Operating income growth in the range of 5 percent to 6 percent;
-
Effective tax rate of about 33 percent;
-
Free cash flow generation in the range of $1.9 billion to $2.1 billion;
-
Capital expenditures in the $400 million range; and
-
Total share repurchases under our regular programs of between $350
million and $450 million, as well as special share repurchases to
satisfy previously disclosed hedging programs, all subject to market
conditions.
Preliminary Fiscal 2017 Expectations
“While it is early and there are still many moving parts, the headwinds
that are impacting the second half of our fiscal 2016 are expected to
continue well into fiscal 2017,” said Mr. Collis. “In addition, recent
contract renewals combined with expenses related to some key investments
in our information technology systems and infrastructure are expected to
negatively impact our growth rate in fiscal 2017. As a result, our
preliminary expectation is to grow our fiscal year 2017 adjusted diluted
earnings per share in the range of 4 percent to 6 percent above the
midpoint of our new fiscal 2016 guidance, which includes an
approximately 3 percent negative impact from the expenses mentioned
above. With our unique position in the market, the talent and expertise
we have in key growing areas, the strategic investments we have made,
and our legacy of operational efficiency and thoughtful capital
deployment, I have great confidence that we will successfully navigate
the challenges of the changing healthcare landscape.”
Some of the assumptions underlying the preliminary expectations for
financial performance in fiscal 2017 include:
-
Revenue growth slightly better than the market;
-
Incremental expenses related to information technology projects and
infrastructure investments;
-
A slight decrease in the effective tax rate;
-
Free cash flow equal to or slightly below net income;
-
No contribution from new business that any of our customers may
contribute as the result of acquisitions;
-
ABDC retains the Kaiser Permanente pharmaceutical distribution
contract; and
-
Regular share repurchases to offset dilution from employee stock
option exercises, and no dilution from the exercise of the 2017
warrants.
Conference Call
The Company will host a conference call to discuss the results at 11:00
a.m. Eastern Time on May 5, 2016.
Participating in the conference call will be:
Steven H. Collis, Chairman, President & Chief Executive Officer
Tim
G. Guttman, Executive Vice President & Chief Financial Officer
The dial-in number for the live call will be (612) 288-0337. No access
code is required. The live call will also be webcast via the Company’s
website at www.amerisourcebergen.com.
Users are encouraged to log on to the webcast approximately 10 minutes
in advance of the scheduled start time of the call.
Replays of the call will be made available via telephone and webcast. A
replay of the webcast will be posted on www.amerisourcebergen.com
approximately two hours after the completion of the call and will remain
available for thirty days. The telephone replay will also be available
approximately two hours after the completion of the call and will remain
available for seven days. To access the telephone replay from within the
U.S., dial (800) 475-6701. From outside the U.S., dial (320) 365-3844.
The access code for the replay is 391056.
Upcoming Investor Events
AmerisourceBergen management will be attending the following investor
conferences over the next two months:
-
Bank of America Merrill Lynch Global Healthcare Conference in Las
Vegas, NV on May 10th and 11th;
-
UBS Global Healthcare Conference in New York, NY on May 24th (one
on one meetings only);
-
Goldman Sachs Global Healthcare Conference in Rancho Palos Verdes, CA
on June 8th.
Please check the website for updates regarding the timing of the live
presentation webcasts, if any, and for replay information.
About AmerisourceBergen
AmerisourceBergen is one of the largest global pharmaceutical sourcing
and distribution services companies, helping both healthcare providers
and pharmaceutical and biotech manufacturers improve patient access to
products and enhance patient care. With services ranging from drug
distribution and niche premium logistics to reimbursement and
pharmaceutical consulting services, AmerisourceBergen delivers
innovative programs and solutions across the pharmaceutical supply
channel in human and animal health. With over $135 billion in annual
revenue, AmerisourceBergen is headquartered in Valley Forge, PA, and
employs approximately 18,000 people. AmerisourceBergen is ranked #16 on
the Fortune 500 list. For more information, go to www.amerisourcebergen.com.
AmerisourceBergen's Cautionary Note Regarding
Forward-Looking Statements
Certain of the statements contained in this press release are
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934. Words such as "expect," "likely," "outlook," "forecast," "would,"
"could," "should," "can," "will," "project," "intend," "plan,"
"continue," "sustain," "synergy," "on track," "believe," "seek,"
"estimate," "anticipate," "may," "possible," "assume," variations of
such words, and similar expressions are intended to identify such
forward-looking statements. These statements are based on management's
current expectations and are subject to uncertainty and change in
circumstances. These statements are not guarantees of future performance
and are based on assumptions that could prove incorrect or could cause
actual results to vary materially from those indicated. Among the
factors that could cause actual results to differ materially from those
projected, anticipated, or implied are the following: competition;
industry consolidation of both customers and suppliers resulting in
increasing pressure to reduce prices for our products and services;
changes in pharmaceutical market growth rates; price inflation in
branded and generic pharmaceuticals, and price deflation in generics;
declining economic conditions in the United States and abroad; financial
market volatility and disruption; substantial defaults in payment,
material reduction in purchases by or the loss, bankruptcy or insolvency
of a major customer; the loss, bankruptcy or insolvency of a major
supplier; changes to the customer or supplier mix; the retention of key
customer or supplier relationships under less favorable economics or the
adverse resolution of any contract or other dispute with customers or
suppliers; changes to customer or supplier payment terms; changes in any
of the economic models used by any of our suppliers to set pricing
and/or other terms for the purchase of pharmaceuticals; interest rate
and foreign currency exchange rate fluctuations; the disruption of
AmerisourceBergen's cash flow and ability to return value to its
stockholders in accordance with its past practices; risks associated
with the strategic, long-term relationship between Walgreens Boots
Alliance, Inc. and AmerisourceBergen, including with respect to the
pharmaceutical distribution agreement and/or the global sourcing
arrangement; risks associated with the potential impact on
AmerisourceBergen's earnings per share resulting from the issuance of
the warrants to subsidiaries of Walgreens Boots Alliance, Inc. (the
"Warrants"); AmerisourceBergen's inability to fully implement its
hedging strategy to mitigate the potentially dilutive effect of the
issuance of its common stock in accordance with the Warrants under its
special share repurchase program due to its financial performance, the
current and future share price of its common stock, its expected cash
flows, competing priorities for capital, and overall market conditions;
changes in the United States healthcare and regulatory environment;
increasing governmental regulations regarding the pharmaceutical supply
channel and pharmaceutical compounding; federal and state government
enforcement initiatives to detect and prevent suspicious orders of
controlled substances and the diversion of controlled substances;
federal and state prosecution of alleged violations of related laws and
regulations, and any related litigation, including shareholder
derivative lawsuits or other disputes relating to our distribution of
controlled substances; increased federal scrutiny and qui tam litigation
for alleged violations of fraud and abuse laws and regulations and/or
any other laws and regulations governing the marketing, sale, purchase
and/or dispensing of pharmaceutical products or services and any related
litigation; material adverse resolution of pending legal proceedings;
declining reimbursement rates for pharmaceuticals; the acquisition of
businesses that do not perform as expected, or that are difficult to
integrate or control, including the integration of MWI and PharMEDium,
or the inability to capture all of the anticipated synergies related
thereto; managing foreign expansion, including non-compliance with the
U.S. Foreign Corrupt Practices Act, anti-bribery laws and economic
sanctions and import laws and regulations; malfunction, failure or
breach of sophisticated information systems to operate as designed;
risks generally associated with data privacy regulation and the
international transfer of personal data; changes in tax laws or
legislative initiatives that could adversely affect AmerisourceBergen's
tax positions and/or AmerisourceBergen's tax liabilities or adverse
resolution of challenges to AmerisourceBergen's tax positions; natural
disasters or other unexpected events that affect AmerisourceBergen's
operations; the impairment of goodwill or other intangible assets,
resulting in a charge to earnings; errors in the production, labeling or
packaging of products compounded by our compounded sterile preparations
(CSP) business; and other economic, business, competitive, legal, tax,
regulatory and/or operational factors affecting AmerisourceBergen's
business generally. Certain additional factors that management believes
could cause actual outcomes and results to differ materially from those
described in forward-looking statements are set forth (i) in Item 1A
(Risk Factors), in the Company’s Annual Report on Form 10-K for the
fiscal year ended September 30, 2015 and elsewhere in that report and
(ii) in other reports filed by the Company pursuant to the Securities
Exchange Act.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
FINANCIAL SUMMARY
|
(In thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
|
|
|
|
|
|
|
Three
|
|
|
|
|
|
|
|
|
|
|
|
Months Ended
|
|
|
|
|
|
|
Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
% of
|
|
|
March 31,
|
|
|
% of
|
|
|
%
|
|
|
|
2016
|
|
|
Revenue
|
|
|
2015
|
|
|
Revenue
|
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$35,698,357
|
|
|
|
|
|
|
|
$32,669,267
|
|
|
|
|
|
|
|
9.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
34,623,026
|
|
|
|
|
|
|
|
31,757,291
|
|
|
|
|
|
|
|
9.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (1) |
|
|
1,075,331
|
|
|
|
3.01
|
%
|
|
|
911,976
|
|
|
|
2.79
|
%
|
|
|
17.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution, selling and administrative
|
|
|
522,760
|
|
|
|
1.46
|
%
|
|
|
442,443
|
|
|
|
1.35
|
%
|
|
|
18.2
|
%
|
Depreciation and amortization
|
|
|
91,312
|
|
|
|
0.26
|
%
|
|
|
56,205
|
|
|
|
0.17
|
%
|
|
|
62.5
|
%
|
Warrants
|
|
|
(503,946
|
)
|
|
|
-1.41
|
%
|
|
|
752,706
|
|
|
|
2.30
|
%
|
|
|
|
|
Employee severance, litigation and other (2) |
|
|
17,617
|
|
|
|
0.05
|
%
|
|
|
24,871
|
|
|
|
0.08
|
%
|
|
|
-29.2
|
%
|
Pension settlement
|
|
|
(1,124
|
)
|
|
|
-
|
%
|
|
|
-
|
|
|
|
-
|
%
|
|
|
|
|
Total operating expenses
|
|
|
126,619
|
|
|
|
0.35
|
%
|
|
|
1,276,225
|
|
|
|
3.91
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
948,712
|
|
|
|
2.66
|
%
|
|
|
(364,249
|
)
|
|
|
-1.11
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income) loss
|
|
|
(756
|
)
|
|
|
-
|
%
|
|
|
11,405
|
|
|
|
0.03
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
33,113
|
|
|
|
0.09
|
%
|
|
|
22,946
|
|
|
|
0.07
|
%
|
|
|
44.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
|
916,355
|
|
|
|
2.57
|
%
|
|
|
(398,600
|
)
|
|
|
-1.22
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
312,220
|
|
|
|
0.87
|
%
|
|
|
114,790
|
|
|
|
0.35
|
%
|
|
|
172.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$604,135
|
|
|
|
1.69
|
%
|
|
|
($513,390
|
)
|
|
|
-1.57
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$2.91
|
|
|
|
|
|
|
|
($2.33
|
)
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
$2.68
|
|
|
|
|
|
|
|
($2.33
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
207,858
|
|
|
|
|
|
|
|
220,243
|
|
|
|
|
|
|
|
-5.6
|
%
|
Diluted (3) |
|
|
225,450
|
|
|
|
|
|
|
|
220,243
|
|
|
|
|
|
|
|
2.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Includes a $92.4 million LIFO expense charge in the three months
ended March 31, 2016. Includes a $151.1 million LIFO expense
charge and a $21.5 million gain from antitrust litigation
settlements in the three months ended March 31, 2015.
|
|
|
|
(2)
|
|
Includes $13.0 million of costs related to customer contract
extensions (primarily related to the settlement of certain
disputed items), $2.6 million of employee severance and other
costs, and $2.0 million of deal-related transaction costs in the
three months ended March 31, 2016. Includes $24.3 million of
deal-related transaction costs (primarily related to professional
fees with respect to the MWI acquisition) and $0.5 million of
employee severance and other costs in the three months ended March
31, 2015.
|
|
|
|
(3)
|
|
As a result of the net loss in the three months ended March 31,
2015, stock options, restricted stock, restricted stock units and
the Warrants issued to Walgreens Boots Alliance, Inc. were
anti-dilutive.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
FINANCIAL SUMMARY
|
(In thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six
|
|
|
|
|
|
|
Six
|
|
|
|
|
|
|
|
|
|
|
|
Months Ended
|
|
|
|
|
|
|
Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
% of
|
|
|
March 31,
|
|
|
% of
|
|
|
%
|
|
|
|
2016
|
|
|
Revenue
|
|
|
2015
|
|
|
Revenue
|
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$72,407,403
|
|
|
|
|
|
|
|
$66,257,869
|
|
|
|
|
|
|
|
9.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
70,367,195
|
|
|
|
|
|
|
|
64,593,594
|
|
|
|
|
|
|
|
8.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (1) |
|
|
2,040,208
|
|
|
|
2.82
|
%
|
|
|
1,664,275
|
|
|
|
2.51
|
%
|
|
|
22.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution, selling and administrative
|
|
|
1,051,056
|
|
|
|
1.45
|
%
|
|
|
858,934
|
|
|
|
1.30
|
%
|
|
|
22.4
|
%
|
Depreciation and amortization
|
|
|
172,750
|
|
|
|
0.24
|
%
|
|
|
105,502
|
|
|
|
0.16
|
%
|
|
|
63.7
|
%
|
Warrants
|
|
|
(36,571
|
)
|
|
|
-0.05
|
%
|
|
|
1,124,111
|
|
|
|
1.70
|
%
|
|
|
|
|
Employee severance, litigation and other (2) |
|
|
36,485
|
|
|
|
0.05
|
%
|
|
|
28,374
|
|
|
|
0.04
|
%
|
|
|
28.6
|
%
|
Pension settlement
|
|
|
47,607
|
|
|
|
0.07
|
%
|
|
|
-
|
|
|
|
-
|
%
|
|
|
|
|
Total operating expenses
|
|
|
1,271,327
|
|
|
|
1.76
|
%
|
|
|
2,116,921
|
|
|
|
3.19
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
768,881
|
|
|
|
1.06
|
%
|
|
|
(452,646
|
)
|
|
|
-0.68
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income) loss
|
|
|
(1,066
|
)
|
|
|
-
|
%
|
|
|
12,719
|
|
|
|
0.02
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
63,992
|
|
|
|
0.09
|
%
|
|
|
40,288
|
|
|
|
0.06
|
%
|
|
|
58.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
|
705,955
|
|
|
|
0.97
|
%
|
|
|
(505,653
|
)
|
|
|
-0.76
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (benefit) expense
|
|
|
(228,557
|
)
|
|
|
-0.32
|
%
|
|
|
207,684
|
|
|
|
0.31
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$934,512
|
|
|
|
1.29
|
%
|
|
|
($713,337
|
)
|
|
|
-1.08
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$4.51
|
|
|
|
|
|
|
|
($3.24
|
)
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
$4.13
|
|
|
|
|
|
|
|
($3.24
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
207,017
|
|
|
|
|
|
|
|
219,854
|
|
|
|
|
|
|
|
-5.8
|
%
|
Diluted (3) |
|
|
226,082
|
|
|
|
|
|
|
|
219,854
|
|
|
|
|
|
|
|
2.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Includes a $193.9 million LIFO expense charge and a $12.8 million
gain from antitrust litigation settlements in the six months ended
March 31, 2016. Includes a $295.2 million LIFO expense charge and a
$21.5 million gain from antitrust litigation settlements in the six
months ended March 31, 2015.
|
|
|
|
(2)
|
|
Includes $18.1 million of deal-related transaction costs (primarily
related to professional fees with respect to the PharMEDium
acquisition), $13.0 million of costs related to customer contract
extensions (primarily related to the settlement of certain disputed
items), and $5.4 million of employee severance and other costs in
the six months ended March 31, 2016. Includes $27.3 million of
deal-related transaction costs (primarily related to professional
fees with respect to the MWI acquisition) and $1.1 million of
employee severance and other costs in the six months ended March 31,
2015.
|
|
|
|
(3)
|
|
As a result of the net loss in the six months ended March 31, 2015,
stock options, restricted stock, restricted stock units and the
Warrants issued to Walgreens Boots Alliance, Inc. were anti-dilutive.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
GAAP TO NON-GAAP RECONCILIATIONS
|
(in thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2016
|
|
|
|
Gross Profit
|
|
|
Operating
Expenses
|
|
|
Operating
Income
|
|
|
Interest
Expense, Net
|
|
|
Income Before
Income Taxes
|
|
|
Income Tax
Expense
|
|
|
Net Income
|
|
|
Diluted
Earnings Per
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
$1,075,331
|
|
|
|
$126,619
|
|
|
|
$948,712
|
|
|
|
$33,113
|
|
|
|
$916,355
|
|
|
|
$312,220
|
|
|
|
$604,135
|
|
|
|
$2.68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warrants income (1)
|
|
|
-
|
|
|
|
503,946
|
|
|
|
(503,946
|
)
|
|
|
(2,154
|
)
|
|
|
(501,792
|
)
|
|
|
(185,207
|
)
|
|
|
(316,585
|
)
|
|
|
(1.43
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on antitrust litigation settlements
|
|
|
(7
|
)
|
|
|
-
|
|
|
|
(7
|
)
|
|
|
-
|
|
|
|
(7
|
)
|
|
|
111
|
|
|
|
(118
|
)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO expense
|
|
|
92,379
|
|
|
|
-
|
|
|
|
92,379
|
|
|
|
-
|
|
|
|
92,379
|
|
|
|
30,919
|
|
|
|
61,460
|
|
|
|
0.27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related intangibles amortization
|
|
|
-
|
|
|
|
(38,720
|
)
|
|
|
38,720
|
|
|
|
-
|
|
|
|
38,796
|
|
|
|
13,088
|
|
|
|
25,708
|
|
|
|
0.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee severance, litigation and other
|
|
|
-
|
|
|
|
(17,617
|
)
|
|
|
17,617
|
|
|
|
-
|
|
|
|
17,617
|
|
|
|
5,901
|
|
|
|
11,716
|
|
|
|
0.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension settlement
|
|
|
-
|
|
|
|
1,124
|
|
|
|
(1,124
|
)
|
|
|
-
|
|
|
|
(1,124
|
)
|
|
|
(823
|
)
|
|
|
(301
|
)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Non-GAAP
|
|
|
$1,167,703
|
|
|
|
$575,352
|
|
|
|
$592,351
|
|
|
|
$30,959
|
|
|
|
$562,224
|
|
|
|
$176,209
|
|
|
|
$386,015
|
|
|
|
$1.68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Non-GAAP % changes vs. prior year quarter
|
|
|
12.1
|
%
|
|
|
17.7
|
%
|
|
|
7.2
|
%
|
|
|
48.9
|
%
|
|
|
8.0
|
%
|
|
|
-5.3
|
%
|
|
|
15.3
|
%
|
|
|
15.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentages of Revenue:
|
|
|
GAAP
|
|
|
Adjusted
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
3.01
|
%
|
|
|
3.27
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
0.35
|
%
|
|
|
1.61
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
2.66
|
%
|
|
|
1.66
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
A tax expense of approximately $186 million was recognized
primarily related to the change in the fair value of the Warrants
during the three months ended March 31, 2016. In connection with
the fiscal 2014 special $650 million share repurchase program, the
Company issued $600 million of 1.15% senior notes due in May 2017.
The interest expense incurred relating to this borrowing has been
excluded from the non-GAAP presentation.
|
|
Note: Management considers GAAP financial measures as well as the
presented non-GAAP financial measures in evaluating the Company's
operating performance. Therefore, the Company believes that the
presentation of non-GAAP financial measures provides useful
supplementary information to, and facilitates additional analysis
by, investors. The non-GAAP financial measures should be viewed in
addition to, and not in lieu of, financial measures calculated in
accordance with GAAP.
|
|
|
AMERISOURCEBERGEN CORPORATION
|
GAAP TO NON-GAAP RECONCILIATIONS
|
(in thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2015
|
|
|
|
Gross Profit
|
|
|
Operating
Expenses
|
|
|
Operating
(Loss)
Income
|
|
|
Interest
Expense, Net
|
|
|
(Loss) Income
Before Income
Taxes
|
|
|
Income Tax
Expense
|
|
|
Net (Loss)
Income
|
|
|
Diluted
Earnings Per
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
$911,976
|
|
|
|
$1,276,225
|
|
|
|
($364,249
|
)
|
|
|
$22,946
|
|
|
|
($398,600
|
)
|
|
|
$114,790
|
|
|
|
($513,390
|
)
|
|
|
$(2.33
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warrants expense (1)
|
|
|
-
|
|
|
|
(752,706
|
)
|
|
|
752,706
|
|
|
|
(2,160
|
)
|
|
|
754,866
|
|
|
|
7,157
|
|
|
|
747,709
|
|
|
|
3.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on antitrust litigation settlements
|
|
|
(21,483
|
)
|
|
|
-
|
|
|
|
(21,483
|
)
|
|
|
-
|
|
|
|
(21,483
|
)
|
|
|
(8,328
|
)
|
|
|
(13,155
|
)
|
|
|
(0.06
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO expense
|
|
|
151,144
|
|
|
|
-
|
|
|
|
151,144
|
|
|
|
-
|
|
|
|
151,144
|
|
|
|
58,930
|
|
|
|
92,214
|
|
|
|
0.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related intangibles amortization
|
|
|
-
|
|
|
|
(9,736
|
)
|
|
|
9,736
|
|
|
|
-
|
|
|
|
10,008
|
|
|
|
3,892
|
|
|
|
6,116
|
|
|
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee severance, litigation and other
|
|
|
-
|
|
|
|
(24,871
|
)
|
|
|
24,871
|
|
|
|
-
|
|
|
|
24,871
|
|
|
|
9,568
|
|
|
|
15,303
|
|
|
|
0.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Non-GAAP
|
|
|
$1,041,637
|
|
|
|
$488,912
|
|
|
|
$552,725
|
|
|
|
$20,786
|
|
|
|
$520,806
|
|
|
|
$186,009
|
|
|
|
$334,797
|
|
|
|
$1.45
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentages of Revenue:
|
|
|
GAAP
|
|
|
Adjusted
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
2.79
|
%
|
|
|
3.19
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
3.91
|
%
|
|
|
1.50
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
-1.11
|
%
|
|
|
1.69
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
During the three months ended March 31, 2015, the amount of
Warrants expense deductible for income tax purposes was based on
the initial valuation of the Warrants. In connection with the
fiscal 2014 special $650 million share repurchase program, the
Company issued $600 million of 1.15% senior notes due in May 2017.
The interest expense incurred relating to this borrowing has been
excluded from the non-GAAP presentation.
|
|
|
|
(2)
|
|
The sum of the components do not equal the total due to rounding.
|
|
|
|
Note: Management considers GAAP financial measures as well as the
presented non-GAAP financial measures in evaluating the Company's
operating performance. Therefore, the Company believes that the
presentation of non-GAAP financial measures provides useful
supplementary information to, and facilitates additional analysis
by, investors. The non-GAAP financial measures should be viewed in
addition to, and not in lieu of, financial measures calculated in
accordance with GAAP.
|
|
|
AMERISOURCEBERGEN CORPORATION
|
GAAP TO NON-GAAP RECONCILIATIONS
|
(in thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended March 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
Operating
|
|
|
Operating
|
|
|
Interest
|
|
|
Income Before
|
|
|
(Benefit)
|
|
|
|
|
|
Earnings Per
|
|
|
|
Gross Profit
|
|
|
Expenses
|
|
|
Income
|
|
|
Expense, Net
|
|
|
Income Taxes
|
|
|
Expense
|
|
|
Net Income
|
|
|
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
$2,040,208
|
|
|
|
$1,271,327
|
|
|
|
$768,881
|
|
|
|
$63,992
|
|
|
|
$705,955
|
|
|
|
($228,557
|
)
|
|
|
$934,512
|
|
|
|
$4.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warrants income (1)
|
|
|
-
|
|
|
|
36,571
|
|
|
|
(36,571
|
)
|
|
|
(4,309
|
)
|
|
|
(32,262
|
)
|
|
|
443,982
|
|
|
|
(476,244
|
)
|
|
|
(2.14
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on antitrust litigation settlements
|
|
|
(12,798
|
)
|
|
|
-
|
|
|
|
(12,798
|
)
|
|
|
-
|
|
|
|
(12,798
|
)
|
|
|
(4,410
|
)
|
|
|
(8,388
|
)
|
|
|
(0.04
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO expense
|
|
|
193,941
|
|
|
|
-
|
|
|
|
193,941
|
|
|
|
-
|
|
|
|
193,941
|
|
|
|
66,820
|
|
|
|
127,121
|
|
|
|
0.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related intangibles amortization
|
|
|
-
|
|
|
|
(69,930
|
)
|
|
|
69,930
|
|
|
|
-
|
|
|
|
70,034
|
|
|
|
24,130
|
|
|
|
45,904
|
|
|
|
0.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee severance, litigation and other
|
|
|
-
|
|
|
|
(36,485
|
)
|
|
|
36,485
|
|
|
|
-
|
|
|
|
36,485
|
|
|
|
12,571
|
|
|
|
23,914
|
|
|
|
0.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension settlement
|
|
|
-
|
|
|
|
(47,607
|
)
|
|
|
47,607
|
|
|
|
-
|
|
|
|
47,607
|
|
|
|
16,403
|
|
|
|
31,204
|
|
|
|
0.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Non-GAAP
|
|
|
$2,221,351
|
|
|
|
$1,153,876
|
|
|
|
$1,067,475
|
|
|
|
$59,683
|
|
|
|
$1,008,962
|
|
|
|
$330,939
|
|
|
|
$678,023
|
|
|
|
$2.95
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Non-GAAP % changes vs. prior year period
|
|
|
14.6
|
%
|
|
|
21.5
|
%
|
|
|
8.0
|
%
|
|
|
65.8
|
%
|
|
|
7.3
|
%
|
|
|
-4.1
|
%
|
|
|
13.9
|
%
|
|
|
13.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentages of Revenue:
|
|
|
GAAP
|
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
2.82
|
%
|
|
|
3.07
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
1.76
|
%
|
|
|
1.59
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
1.06
|
%
|
|
|
1.47
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
The Company received a private letter ruling from the Internal
Revenue Service in November 2015, which entitles it to an income
tax deduction equal to the fair value of the Warrants on the date
of exercise. As a result, the Company recognized a tax benefit
adjustment of approximately $456 million, which represented the
estimated tax deduction for the increase in the fair value of the
Warrants from the issuance date through September 30, 2015. A tax
expense of approximately $13 million was recognized primarily
related to the change in the fair value of the Warrants during the
six months ended March 31, 2016. In connection with the fiscal
2014 special $650 million share repurchase program, the Company
issued $600 million of 1.15% senior notes due in May 2017. The
interest expense incurred relating to this borrowing has been
excluded from the non-GAAP presentation.
|
|
|
|
(2)
|
|
The sum of the components do not equal the total due to rounding.
|
|
|
|
Note: Management considers GAAP financial measures as well as the
presented non-GAAP financial measures in evaluating the Company's
operating performance. Therefore, the Company believes that the
presentation of non-GAAP financial measures provides useful
supplementary information to, and facilitates additional analysis
by, investors. The non-GAAP financial measures should be viewed in
addition to, and not in lieu of, financial measures calculated in
accordance with GAAP.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
GAAP TO NON-GAAP RECONCILIATIONS
|
(in thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended March 31, 2015
|
|
|
|
|
|
|
|
|
|
Operating
|
|
|
|
|
|
(Loss) Income
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
Operating
|
|
|
(Loss)
|
|
|
Interest
|
|
|
Before Income
|
|
|
Income Tax
|
|
|
Net (Loss)
|
|
|
Earnings Per
|
|
|
|
Gross Profit
|
|
|
Expenses
|
|
|
Income
|
|
|
Expense, Net
|
|
|
Taxes
|
|
|
Expense
|
|
|
Income
|
|
|
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
$1,664,275
|
|
|
|
$2,116,921
|
|
|
|
($452,646
|
)
|
|
|
$40,288
|
|
|
|
($505,653
|
)
|
|
|
$207,684
|
|
|
|
($713,337
|
)
|
|
|
$(3.24
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warrants expense (1)
|
|
|
-
|
|
|
|
(1,124,111
|
)
|
|
|
1,124,111
|
|
|
|
(4,300
|
)
|
|
|
1,128,411
|
|
|
|
14,297
|
|
|
|
1,114,114
|
|
|
|
4.99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on antitrust litigation settlements
|
|
|
(21,483
|
)
|
|
|
-
|
|
|
|
(21,483
|
)
|
|
|
-
|
|
|
|
(21,483
|
)
|
|
|
(8,328
|
)
|
|
|
(13,155
|
)
|
|
|
(0.06
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO expense
|
|
|
295,168
|
|
|
|
-
|
|
|
|
295,168
|
|
|
|
-
|
|
|
|
295,168
|
|
|
|
114,426
|
|
|
|
180,742
|
|
|
|
0.79
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related intangibles amortization
|
|
|
-
|
|
|
|
(14,768
|
)
|
|
|
14,768
|
|
|
|
-
|
|
|
|
15,338
|
|
|
|
5,946
|
|
|
|
9,392
|
|
|
|
0.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee severance, litigation and other
|
|
|
-
|
|
|
|
(28,374
|
)
|
|
|
28,374
|
|
|
|
-
|
|
|
|
28,374
|
|
|
|
10,918
|
|
|
|
17,456
|
|
|
|
0.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Non-GAAP
|
|
|
$1,937,960
|
|
|
|
$949,668
|
|
|
|
$988,292
|
|
|
|
$35,988
|
|
|
|
$940,155
|
|
|
|
$344,943
|
|
|
|
$595,212
|
|
|
|
$2.59
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentages of Revenue:
|
|
|
GAAP
|
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
2.51
|
%
|
|
|
2.92
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
3.19
|
%
|
|
|
1.43
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
-0.68
|
%
|
|
|
1.49
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
During the six months ended March 31, 2015, the amount of Warrants
expense deductible for income tax purposes was based on the
initial valuation of the Warrants. In connection with the fiscal
2014 special $650 million share repurchase program, the Company
issued $600 million of 1.15% senior notes due in May 2017. The
interest expense incurred relating to this borrowing has been
excluded from the non-GAAP presentation.
|
|
|
|
(2)
|
|
The sum of the components do not equal the total due to rounding.
|
|
|
|
Note: Management considers GAAP financial measures as well as the
presented non-GAAP financial measures in evaluating the Company's
operating performance. Therefore, the Company believes that the
presentation of non-GAAP financial measures provides useful
supplementary information to, and facilitates additional analysis
by, investors. The non-GAAP financial measures should be viewed in
addition to, and not in lieu of, financial measures calculated in
accordance with GAAP.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
RECONCILIATION OF DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
(GAAP TO NON-GAAP)
|
(In thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
Six Months Ended March 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic shares outstanding
|
|
|
207,858
|
|
|
|
220,243
|
|
|
207,017
|
|
|
|
219,854
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock option, restricted stock, and restricted stock unit dilution
|
|
|
3,421
|
|
|
|
-
|
|
|
3,639
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warrant dilution
|
|
|
14,171
|
|
|
|
-
|
|
|
15,426
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted shares outstanding
|
|
|
225,450
|
|
|
|
220,243
|
|
|
226,082
|
|
|
|
219,854
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warrant dilution (1) |
|
|
(14,171
|
)
|
|
|
-
|
|
|
(15,426
|
)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares repurchased under special share repurchase programs, net (1) |
|
|
17,981
|
|
|
|
5,112
|
|
|
18,948
|
|
|
|
4,974
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock option, restricted stock, and restricted stock unit dilution (2) |
|
|
-
|
|
|
|
5,036
|
|
|
-
|
|
|
|
5,013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted shares outstanding
|
|
|
229,260
|
|
|
|
230,391
|
|
|
229,604
|
|
|
|
229,841
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
For the non-GAAP presentation, diluted weighted average common
shares outstanding have been adjusted to exclude the impact of the
unexercised Warrants and the shares repurchased under special
share repurchase programs, net of the weighted average number of
shares issued related to the March 2016 Warrant exercise.
|
|
|
|
(2)
|
|
For the non-GAAP presentation, diluted weighted average common
shares outstanding have been adjusted to include the impact of the
stock options, restricted stock, and restricted stock units that
were anti-dilutive for the GAAP presentation.
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
WARRANTS COVERAGE INFORMATION
|
(In thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016 Warrants
|
|
|
2017 Warrants
|
|
|
|
|
|
|
|
|
|
Warrants Exercised
|
|
|
22,697
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Warrants Exercisable
|
|
|
-
|
|
|
|
22,697
|
|
|
|
|
|
|
|
|
|
|
Shares repurchased under special share repurchase programs through
March 31, 2016
|
|
|
22,697
|
|
|
|
2,015
|
|
|
|
|
|
|
|
|
|
|
Shares repurchased under special share repurchase programs in
April 2016
|
|
|
-
|
|
|
|
8,432
|
|
|
|
|
|
|
|
|
|
|
Shares expected to be repurchased under remaining Capped Calls (1)
|
|
|
-
|
|
|
|
12,550
|
|
|
|
|
|
|
|
|
|
|
Total repurchases
|
|
|
22,697
|
|
|
|
22,997
|
|
|
|
|
|
|
|
|
|
|
Warrants Coverage
|
|
|
100
|
%
|
|
|
101
|
%
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Based on March 31, 2016 closing stock price of $86.55.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
SUMMARY SEGMENT INFORMATION
|
(dollars in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
Revenue
|
|
|
2016
|
|
|
2015
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
|
$34,165,733
|
|
|
|
$31,762,523
|
|
|
|
7.6
|
%
|
Other
|
|
|
1,599,805
|
|
|
|
986,069
|
|
|
|
62.2
|
%
|
Intersegment eliminations
|
|
|
(67,181
|
)
|
|
|
(79,325
|
)
|
|
|
-15.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$35,698,357
|
|
|
|
$32,669,267
|
|
|
|
9.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
Operating income (loss)
|
|
|
2016
|
|
|
2015
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
|
$498,395
|
|
|
|
$488,575
|
|
|
|
2.0
|
%
|
Other
|
|
|
93,956
|
|
|
|
64,150
|
|
|
|
46.5
|
%
|
Total segment operating income
|
|
|
592,351
|
|
|
|
552,725
|
|
|
|
7.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains on antitrust litigation settlements
|
|
|
7
|
|
|
|
21,483
|
|
|
|
|
|
LIFO expense
|
|
|
(92,379
|
)
|
|
|
(151,144
|
)
|
|
|
|
|
Acquisition-related intangibles amortization
|
|
|
(38,720
|
)
|
|
|
(9,736
|
)
|
|
|
|
|
Warrants income (expense)
|
|
|
503,946
|
|
|
|
(752,706
|
)
|
|
|
|
|
Employee severance, litigation and other
|
|
|
(17,617
|
)
|
|
|
(24,871
|
)
|
|
|
|
|
Pension settlement
|
|
|
1,124
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
$948,712
|
|
|
|
($364,249
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentages of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
2.58
|
%
|
|
|
2.67
|
%
|
|
|
|
|
Operating expenses
|
|
|
1.12
|
%
|
|
|
1.14
|
%
|
|
|
|
|
Operating income
|
|
|
1.46
|
%
|
|
|
1.54
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
17.85
|
%
|
|
|
19.52
|
%
|
|
|
|
|
Operating expenses
|
|
|
11.97
|
%
|
|
|
13.02
|
%
|
|
|
|
|
Operating income
|
|
|
5.87
|
%
|
|
|
6.51
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AmerisourceBergen Corporation (GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
3.01
|
%
|
|
|
2.79
|
%
|
|
|
|
|
Operating expenses
|
|
|
0.35
|
%
|
|
|
3.91
|
%
|
|
|
|
|
Operating income
|
|
|
2.66
|
%
|
|
|
-1.11
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AmerisourceBergen Corporation (Non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
3.27
|
%
|
|
|
3.19
|
%
|
|
|
|
|
Operating expenses
|
|
|
1.61
|
%
|
|
|
1.50
|
%
|
|
|
|
|
Operating income
|
|
|
1.66
|
%
|
|
|
1.69
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
SUMMARY SEGMENT INFORMATION
|
(dollars in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended March 31,
|
Revenue
|
|
|
2016
|
|
|
2015
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
|
$69,360,412
|
|
|
|
$64,745,247
|
|
|
|
7.1
|
%
|
Other
|
|
|
3,177,620
|
|
|
|
1,682,070
|
|
|
|
88.9
|
%
|
Intersegment eliminations
|
|
|
(130,629
|
)
|
|
|
(169,448
|
)
|
|
|
-22.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$72,407,403
|
|
|
|
$66,257,869
|
|
|
|
9.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended March 31,
|
Operating income (loss)
|
|
|
2016
|
|
|
2015
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
|
$877,954
|
|
|
|
$878,976
|
|
|
|
-0.1
|
%
|
Other
|
|
|
189,521
|
|
|
|
109,316
|
|
|
|
73.4
|
%
|
Total segment operating income
|
|
|
1,067,475
|
|
|
|
988,292
|
|
|
|
8.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains on antitrust litigation settlements
|
|
|
12,798
|
|
|
|
21,483
|
|
|
|
|
|
LIFO expense
|
|
|
(193,941
|
)
|
|
|
(295,168
|
)
|
|
|
|
|
Acquisition-related intangibles amortization
|
|
|
(69,930
|
)
|
|
|
(14,768
|
)
|
|
|
|
|
Warrants income (expense)
|
|
|
36,571
|
|
|
|
(1,124,111
|
)
|
|
|
|
|
Employee severance, litigation and other
|
|
|
(36,485
|
)
|
|
|
(28,374
|
)
|
|
|
|
|
Pension settlement
|
|
|
(47,607
|
)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
$768,881
|
|
|
|
($452,646
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentages of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceutical Distribution
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
2.38
|
%
|
|
|
2.47
|
%
|
|
|
|
|
Operating expenses
|
|
|
1.12
|
%
|
|
|
1.12
|
%
|
|
|
|
|
Operating income
|
|
|
1.27
|
%
|
|
|
1.36
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
17.85
|
%
|
|
|
20.02
|
%
|
|
|
|
|
Operating expenses
|
|
|
11.88
|
%
|
|
|
13.52
|
%
|
|
|
|
|
Operating income
|
|
|
5.96
|
%
|
|
|
6.50
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AmerisourceBergen Corporation (GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
2.82
|
%
|
|
|
2.51
|
%
|
|
|
|
|
Operating expenses
|
|
|
1.76
|
%
|
|
|
3.19
|
%
|
|
|
|
|
Operating loss
|
|
|
1.06
|
%
|
|
|
-0.68
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AmerisourceBergen Corporation (Non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
3.07
|
%
|
|
|
2.92
|
%
|
|
|
|
|
Operating expenses
|
|
|
1.59
|
%
|
|
|
1.43
|
%
|
|
|
|
|
Operating income
|
|
|
1.47
|
%
|
|
|
1.49
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
September 30,
|
|
|
|
2016
|
|
|
2015
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$2,525,287
|
|
|
$2,167,442
|
Accounts receivable, net
|
|
|
8,766,994
|
|
|
8,222,951
|
Merchandise inventories
|
|
|
10,644,586
|
|
|
9,755,094
|
Prepaid expenses and other
|
|
|
133,201
|
|
|
189,001
|
Total current assets
|
|
|
22,070,068
|
|
|
20,334,488
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
1,094,711
|
|
|
979,251
|
Goodwill and other intangible assets
|
|
|
9,028,488
|
|
|
6,123,944
|
Other long-term assets
|
|
|
302,088
|
|
|
298,474
|
|
|
|
|
|
|
|
Total assets
|
|
|
$32,495,355
|
|
|
$27,736,157
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
|
$22,986,172
|
|
|
$20,886,439
|
Other current liabilities
|
|
|
784,738
|
|
|
679,309
|
Total current liabilities
|
|
|
23,770,910
|
|
|
21,565,748
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
4,368,586
|
|
|
3,493,048
|
|
|
|
|
|
|
|
Other long-term liabilities
|
|
|
2,164,697
|
|
|
2,043,841
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
2,191,162
|
|
|
633,520
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
|
$32,495,355
|
|
|
$27,736,157
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERISOURCEBERGEN CORPORATION
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six
|
|
|
Six
|
|
|
|
Months Ended
|
|
|
Months Ended
|
|
|
|
March 31,
|
|
|
March 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
Operating Activities:
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$934,512
|
|
|
|
($713,337
|
)
|
Adjustments to reconcile net income (loss) to net cash provided by
operating activities (1) |
|
|
(48,519
|
)
|
|
|
1,263,253
|
|
Changes in operating assets and liabilities, excluding the effects
of acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(472,074
|
)
|
|
|
(810,902
|
)
|
Merchandise inventories (2) |
|
|
(853,077
|
)
|
|
|
(611,235
|
)
|
Accounts payable, accrued expenses, and income taxes
|
|
|
2,028,560
|
|
|
|
2,566,923
|
|
Other
|
|
|
41,184
|
|
|
|
(56,018
|
)
|
Net cash provided by operating activities
|
|
|
1,630,586
|
|
|
|
1,638,684
|
|
|
|
|
|
|
|
|
|
|
Investing Activities:
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
(180,012
|
)
|
|
|
(105,201
|
)
|
Cost of acquired companies, net of cash acquired
|
|
|
(2,731,356
|
)
|
|
|
(2,603,918
|
)
|
Net proceeds from investment activity in available-for-sale
securities
|
|
|
47,693
|
|
|
|
-
|
|
Other
|
|
|
(10,878
|
)
|
|
|
19,666
|
|
Net cash used in investing activities
|
|
|
(2,874,553
|
)
|
|
|
(2,689,453
|
)
|
|
|
|
|
|
|
|
|
|
Financing Activities:
|
|
|
|
|
|
|
|
|
Net borrowings
|
|
|
994,943
|
|
|
|
2,010,781
|
|
Purchases of common stock (3) |
|
|
(436,804
|
)
|
|
|
(316,480
|
)
|
Exercises of warrants
|
|
|
1,168,891
|
|
|
|
-
|
|
Exercises of stock options
|
|
|
37,285
|
|
|
|
141,895
|
|
Cash dividends on common stock
|
|
|
(141,829
|
)
|
|
|
(128,119
|
)
|
Purchases of call options
|
|
|
-
|
|
|
|
(100,000
|
)
|
Other
|
|
|
(20,674
|
)
|
|
|
(28,842
|
)
|
Net cash provided by financing activities
|
|
|
1,601,812
|
|
|
|
1,579,235
|
|
|
|
|
|
|
|
|
|
|
Increase in cash and cash equivalents
|
|
|
357,845
|
|
|
|
528,466
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
2,167,442
|
|
|
|
1,808,513
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period
|
|
|
$2,525,287
|
|
|
|
$2,336,979
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Adjustments include non-cash warrants (income) expense of $(36.6)
million and $1,124.1 million for the six months ended March 31,
2016 and 2015, respectively.
|
|
|
|
(2)
|
|
Merchandise inventories include LIFO expense of $193.9 million and
$295.2 million for the six months ended March 31, 2016 and 2015,
respectively.
|
|
|
|
(3)
|
|
Includes purchases made under special share repurchase programs
totaling $336.8 million that cash settled in the six months ended
March 31, 2016 (all under the call options). Includes purchases
made under special share repurchase programs totaling $150.2
million in the six months ended March 31, 2015, which includes
$18.0 million of fiscal 2014 purchases that cash settled in
October 2014.
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160505005441/en/
Source: AmerisourceBergen Corporation
AmerisourceBergen Corporation
Barbara Brungess
Vice
President, Corporate & Investor Relations
610-727-7199
bbrungess@amerisourcebergen.com